Harris Corp.Find Ratings Reports
HARRIS CORP's gross profit margin for the second quarter of its fiscal year 2018 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. HARRIS CORP has weak liquidity. Currently, the Quick Ratio is 0.62 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 5.16% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q2 FY18||Q2 FY17|
|Net Sales ($mil)||1535.0||1449.0|
|Net Income ($mil)||139.0||177.0|
|Balance Sheet||Q2 FY18||Q2 FY17|
|Cash & Equiv. ($mil)||422.0||361.0|
|Total Assets ($mil)||9856.0||11618.0|
|Total Debt ($mil)||3919.0||4400.0|
|Profitability||Q2 FY18||Q2 FY17|
|Gross Profit Margin||38.89||41.27|
|Return on Assets||5.23||5.72|
|Return on Equity||21.24||19.29|
|Debt||Q2 FY18||Q2 FY17|
|Share Data||Q2 FY18||Q2 FY17|
|Shares outstanding (mil)||118.58||124.28|
|Div / share||0.57||0.53|
|Book value / share||25.25||25.4|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||735743.0||620646.0|
BUY. The current P/E ratio indicates a discount compared to an average of 30.84 for the Aerospace & Defense industry and a premium compared to the S&P 500 average of 25.66. To use another comparison, its price-to-book ratio of 6.26 indicates a significant premium versus the S&P 500 average of 3.28 and a significant discount versus the industry average of 159.91. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, HARRIS CORP proves to trade at a discount to investment alternatives within the industry.
|HRS 30.48||Peers 30.84||HRS 28.61||Peers 18.75|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
HRS is trading at a valuation on par with its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
HRS is trading at a significant premium to its peers.
|HRS 20.28||Peers 21.89||HRS 1.15||Peers 2.62|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
HRS is trading at a premium to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
HRS trades at a significant discount to its peers.
|HRS 6.26||Peers 159.91||HRS 7.01||Peers 12.07|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
HRS is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, HRS is expected to significantly trail its peers on the basis of its earnings growth rate.
|HRS 3.14||Peers 2.15||HRS 0.45||Peers 9.53|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
HRS is trading at a significant premium to its industry.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
HRS significantly trails its peers on the basis of sales growth